Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.</li><li>Our recommended stocks are CBG and SCGP.</li><li><div><div><p>The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.</p></div></div></li></ul></div></div></div></div>

We propose a new set of global plays in accordance with the de- globalization trend, shifting the allocation toward Asia-based companies with better growth prospects than those that generate the bulk of their revenue in Western markets.Our recommended stocks are CBG and SCGP.The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth potential.

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

Equity Bottom-Up

<ul><li>We upgrade our rating to “Outperform” from “Neutral,” with a revised 12M forward fair value (FV) of Bt5.25, based on a required return of 20.9% and implying a PER of 4.8x (previously Bt5.38, based on a required return of 20.7%).</li><li>We lower our FV to reflect earnings downgrades; however, the stock still offers 8% upside to our revised FV. NER remains a key beneficiary of the strong rubber price outlook.</li><li>We believe NER’s share price remains relatively laggard despite Iran-related supply tightness in synthetic rubber.</li></ul>

We upgrade our rating to “Outperform” from “Neutral,” with a revised 12M forward fair value (FV) of Bt5.25, based on a required return of 20.9% and implying a PER of 4.8x (previously Bt5.38, based on a required return of 20.7%).We lower our FV to reflect earnings downgrades; however, the stock still offers 8% upside to our revised FV. NER remains a key beneficiary of the strong rubber price outlook.We believe NER’s share price remains relatively laggard despite Iran-related supply tightness in synthetic rubber.

NORTH EAST RUBBER Plc.: Share Price Lags Rubber Prices And Peers

Sri Trang Agro-Industry / Equity Bottom-Up

<ul><li>We maintain our Outperform rating but revise our 12month fair value to Bt14.70 (from Bt20.12), based on a required return of 5.71% and a target PER of 17.5x.</li><li>Technical specified rubber (TSR) exports appear to have been affected by US reciprocal tariffs, with July export value at Bt7.1bn — up 5% MoM but down 37% YoY.</li><li>We expect rubber prices to weaken over the next four months, as earlier La Niña conditions supported higher production in Thailand and Indonesia, adding pressure on prices.</li></ul>

We maintain our Outperform rating but revise our 12month fair value to Bt14.70 (from Bt20.12), based on a required return of 5.71% and a target PER of 17.5x.Technical specified rubber (TSR) exports appear to have been affected by US reciprocal tariffs, with July export value at Bt7.1bn — up 5% MoM but down 37% YoY.We expect rubber prices to weaken over the next four months, as earlier La Niña conditions supported higher production in Thailand and Indonesia, adding pressure on prices.

SRI TRANG AGRO-INDUSTRY Plc. (STA): Tariff Headwinds, But Recovery Ahead

<ul><li>STA’s earnings turned around to a net loss in 2Q25, pressured by STR selling prices falling faster than raw material costs and by provisions for inventory write- downs.</li><li>We are in the process of reviewing our forecasts, rating, and fair price.</li><li>Initially, we expect the 3Q25E operating performance to improve QoQ, supported by rubber prices rising about 5% from the end of 2Q25.</li></ul>

STA’s earnings turned around to a net loss in 2Q25, pressured by STR selling prices falling faster than raw material costs and by provisions for inventory write- downs.We are in the process of reviewing our forecasts, rating, and fair price.Initially, we expect the 3Q25E operating performance to improve QoQ, supported by rubber prices rising about 5% from the end of 2Q25.

Sri Trang Agro-Industry - 2Q25 Earnings Turned to a Loss on a Lower GPM

<ul><li>STA reported strong net profit in 1Q25, mainly driven by improved gross margins in both the natural rubber and rubber glove businesses.</li><li>Given the robust performance, we see slight upside risk to our current estimates.</li><li>We maintain our Outperform rating with a 2025E fair value of Bt20.12, based on a required return of 6.58%, equivalent to a PER of 15.2x.</li></ul>

STA reported strong net profit in 1Q25, mainly driven by improved gross margins in both the natural rubber and rubber glove businesses.Given the robust performance, we see slight upside risk to our current estimates.We maintain our Outperform rating with a 2025E fair value of Bt20.12, based on a required return of 6.58%, equivalent to a PER of 15.2x.

STA TB - Strong 1Q25 Profit Driven by Both the Natural Rubber and Rubber Glove Businesses

Thailand

Sri Trang Agro-Industry is an integrated producer and distributor of natural rubber, manufacturing products such as ribbed smoked sheets, concentrated latex, and block rubber. The company also produces natural rubber gloves and provides engineering, logistics, and IT services, with operations spanning rubber plantations and processing. Sri Trang Agro-Industry was established on June 21, 1987, and is headquartered in Songkhla, Thailand.

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Sri Trang Agro-Industry (STA TB)

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth...

Krungthai XSpring

SRI TRANG AGRO-INDUSTRY Plc. (STA): Tariff Headwinds, But Recovery Ahead

We maintain our Outperform rating but revise our 12month fair value to Bt14.70 (from Bt20.12), based on a required return of 5.71% and a target PER...

Krungthai XSpring

Sri Trang Agro-Industry - 2Q25 Earnings Turned to a Loss on a Lower GPM

STA’s earnings turned around to a net loss in 2Q25, pressured by STR selling prices falling faster than raw material costs and by provisions for...

Krungthai XSpring

STA TB - Strong 1Q25 Profit Driven by Both the Natural Rubber and Rubber Glove Businesses

We maintain our Outperform rating with a 2025E fair value of Bt20.12, based on a required return of 6.58%, equivalent to a PER of 15.2x.

Krungthai XSpring

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Changing Landscape for Global Plays - Shifting the Allocation of Global Plays Toward Asia

The global economy is less synchronized than in the past, meaning that a global plays strategy should be more area focused to enhance the growth...

Krungthai XSpring

NORTH EAST RUBBER Plc.: Share Price Lags Rubber Prices And Peers

We lower our FV to reflect earnings downgrades; however, the stock still offers 8% upside to our revised FV. NER remains a key beneficiary of the...

Krungthai XSpring

SRI TRANG AGRO-INDUSTRY Plc. (STA): Tariff Headwinds, But Recovery Ahead

We maintain our Outperform rating but revise our 12month fair value to Bt14.70 (from Bt20.12), based on a required return of 5.71% and a target PER...

Krungthai XSpring

Sri Trang Agro-Industry - 2Q25 Earnings Turned to a Loss on a Lower GPM

STA’s earnings turned around to a net loss in 2Q25, pressured by STR selling prices falling faster than raw material costs and by provisions for...

Krungthai XSpring

STA TB - Strong 1Q25 Profit Driven by Both the Natural Rubber and Rubber Glove Businesses

We maintain our Outperform rating with a 2025E fair value of Bt20.12, based on a required return of 6.58%, equivalent to a PER of 15.2x.

Krungthai XSpring